What is merchant underwriting? How providers decide to let you take card payments
By SendPay Business · · 2 min read
- 1Your card appears in your app
- 2Tap it to pay in a shop
- 3See every payment as it happens
Before a business can take card payments, the payment provider checks it. This is called underwriting. The provider is taking on risk, because if customers claim their money back and the business can't pay, the provider may be left covering the loss.
What providers look at
- Who owns and runs the business, and their identity.
- What you sell, and whether it is on the provider's list of restricted products.
- How you sell: in person, online, by subscription or with long delivery times.
- Expected sales volumes and average payment size.
- Your website, refund policy and terms.
- Past chargeback levels, if you have taken cards before.
Possible outcomes
Most small, simple businesses are approved quickly. Others may be approved with conditions, such as a rolling reserve that holds back part of each payout for a while, a lower limit, or slower payouts. Some businesses are declined and may need a specialist provider.
Try it
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Colour
What it does
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Getting approved faster
Have ID and company details ready, make sure your website clearly shows what you sell, your prices, contact details and refund policy, and describe your business honestly. Mismatches between what you say and what your website shows are a common cause of delays.
Where SendPay fits
SendPay platforms include payment links, invoicing and subscriptions under your own brand, powered by licensed partners. Ask us what applies to your type of business before you launch.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
How much will a provider hold back?
Work out a rolling reserve and your first month's payouts.
Rolling reserve calculator →What is a merchant account?
The account that lets a business take cards.
What is a merchant account? →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.